UNIVERSIDAD TÉCNICA DEL NORTE
FACULTAD DE INGENIERÍA EN CIENCIAS APLICADAS
CARRERA DE INGENIERÍA EN ELECTRÓNICA Y REDES DE COMUNICACIÓN
SCIENTIFIC REPORT
THEME:
DESIGN OF A NETWORK OF OPTICAL FIBER OF ACCESS MULTISERVICE FTTH
(FIBER TO THE HOME) FOR THE COMPANY AIRMAXTELECOM SOLUCIONES
TECNOLÓGICAS S.A., IN URCUQUI PROVINCE OF IMBABURA.
AUTOR: ARTEAGA PINCHAO JENNYFER SOLEDAD
DIRECTOR: ING. SANDRA CASTRO
IBARRA - ECUADOR
JULY 2015
Universidad Técnica Del Norte. Arteaga. Network of Optical fiber to the home FTTH-GPON.
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Summary—The present project treats on the study and
design of a network of access based on the use of the
technology G-PON, for the Urcuquí sector, province of
Imbabura, in order to that an ISP provides services of
telecommunications of better quality analyzing the advantages
and disadvantages of the current technologies, as well as also
the cost of implementation and the time of recovery of the
investment.
The present project is composed basically of three parts, the
study of the technology FTTx based on the technology G-
PON, the design of a network of last mile FTTH, from the
point of view of a Provider of Internet services, and the
financial analysis with referential costs of the solutions FTTH
that get ready on the market. Next the realized is described
briefly.
Index of terms— Access, FTTx, FTTH, GPON,
Optical Fiber.
I. INTRODUTION
TECHNOLOGIES OF ACCESS FOR OPTICAL FIBER. The
need to obtain a quality communication at long
distances is easier and easier thanks to the different
means of broadcast, existing, this is the case of the
optical fiber, since at present it develops a very
important role in linkage of short and big distances
like systems of terrestrial telecommunications and
marine (Internet and telephony), telephone linkage
Document received on June 10, 2015. This investigation was conducted as
work previous degree to obtain the professional title in the career of Engineering in Electronics and Communication Networks (CIERCOM) of the
Faculty of Engineering in Applied Sciences (FICA) of the Universidad
Técnica del Norte. J. S. Arteaga, who graduated from de Career of Engineering in Electronics
and Communication Networks, working in the company TELCONET, Av. 12
de Octubre N24-660 y Francisco Salazar Quito – Ecuador (phone: +593 2 3963100 / 6020650; email: [email protected])
between head offices, medicine, lighting between
others. Increasing the efficiency in
telecommunications services and hence contributing
to the technological development.
AIRMAXTELECOM S.A. is located in the City of
Ibarra, Imbabura province, Bearing in mind that at
present it is a WISP (Wireless Internet Service
Provider), compromised by its users, it is
indispensable that the company is provided with a
network of access (FTTH) in the parish of Urcuquí,
since this will help to overcome the requests of its
users, improving of such a way the quality of the
given services, benefiting the current and future
users in this area and therefore maintaining the
business model of the company.
II. SYSTEMS OF COMMUNICATION FOR OPTICAL
FIBER GENERAL ANALYSIS
A. Optical Fiber
The optical fiber is a way that allows the
communication between two points, origin -
destination, by means of the light employment, the
same that is confined and guided along its trip,
basically it is constituted by the nucleus that is the
central part where most of the light are spread, the
revetment divides that it makes a detour to the
nucleus and that it makes the manipulation of the
fiber possible.
1) Single-mode optical Fiber: It allows to
increase the capacity, since, on having had a smaller
core, it allows the light beams to travel in parallel to
Design of a network of optical fiber of de access
multiservice FTTH (Fiber to the Home), for the
company ARMAXTELECOM SOLUCIONES
TECNOLÓGICAS S.A, in Urcuqui province of
Imbabura
Jennyfer S. Arteaga.
Ingeniería en Electrónica y Redes de Comunicación, Universidad Técnica del Norte, Ibarra-Ecuador
Universidad Técnica Del Norte. Arteaga. Network of Optical fiber to the home FTTH-GPON.
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the axis of the fiber, allowing to come at major
distances, typically this fiber is used in networks
MAN and networks WAN.
2) Multi-mode Optical Fiber: As its name
indicates it in this fiber is possible that spread
multiple light beams across the core, in exchange
for sacrificing distance, that is to say, with this fiber
it is possible only to come at short distances, being
an ideal for ambiences LAN.
3) Advantages of the optical fiber: The optical
fiber systems have more capacity due to the big
band, immunity to the electromagnetic interference,
immunity to the static interference, allow to operate
on a wide status of change of temperature, light
weight and small size that does that its manipulation
is easier, needless physical space, allow to come at
major distances without needing relay and
regenerated elements.
2) Disadvantages of the optical fiber: The electro-
optical conversion process needs a considerable
cost, the maintenance, installation and repair of the
systems of optical fiber is more difficult and costly,
one needs personnel specialized for the installation,
repair and maintenance.
B. Technology FTTx - Network of Access
The transmission technologies, they allow to
users to communicate to themselves with companies
that offer telecommunications services that they
should be these of big or small scale.
A network of access FTTx, it is only a network
based on the deployment of cable of optical fiber
that comes at certain distance of the final user,
turning to the network of access as such a network
of major speed with regard to its counterpart, the
copper.
In order to supply services of wide band to the
final users, in places where is difficult to come with
technologies xDSL, for limitations of technical
aspect as for functioning conditions, there arises the
idea of bringing the nodes over towards the hearths
and small business, what returned to the term: Fiber
to the x (FTTx).
Next there appear some acronyms used in the
technical and commercial literature.
FTTB (Fiber to the business).
FIBRA ÓPTICA
CENTRAL OFFICE
FTTB (FIBER TO THE BUSINESS)
Figure 1. Fiber to the business
Developed by Jennyfer Arteaga
FTTC (Fiber to the curb).
FIBRA ÓPTICA
CENTRAL OFFICE
FTTC (FIBER TO THE CURB)
Figure 2. FTTC. Fiber to the curb.
Developed by Jennyfer Arteaga
FTTH (Fiber to the home).
Universidad Técnica Del Norte. Arteaga. Network of Optical fiber to the home FTTH-GPON.
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FIBRA ÓPTICA
CENTRAL OFFICE
FTTH (FIBER TO THE HOME)
Figure 3. FTTH. Fiber to the home.
Developed by Jennyfer Arteaga
C. Technology PON – Networks of Access
The main characteristic of the technology PON
(Passive Optical Network), is that no active element
exists between the central office and the locality of
the client. What provides certain advantages to the
operators like: savings in maintenance, eliminating
this way the need for supply of energy and
administration of active devices.
The main element in a PON network, it is the
Splitter, which works as a multiplexer, that is to say,
is optical fiber tandem device with many input
terminals and many output terminals. Next there are
mentioned the elements that shape a PON network:
OLT— Optical Line Terminal. Located where the
service provider gives the interface between SET
and the services of Network of the provider that
they include typically: traffic IP on Gigabit, 10G or
100Mbps Ethernet, Interfaces standard such TDM
like SONET or SDH, ATM.
ONT— Optical Network Terminal. Located in the
final user, presents the native service interfaces to
the user. Services that can include: POTS or VoIP,
data, video, etc.
ODN— Optical Distribution Network. It is
everything what exists between the active devices
of a PON network, the ODN is shaped basically for:
splitters, cables of Optical fiber and protection
elements of splices and for route derivation.
The ODN is the most important part to be
considered in the design of a PON network, since in
the ODN it is where most of losses appears in a
PON system, its deployment and maintenance is
costlier, it needs an important consideration in
Ecuador due to restrictions for control entities with
what to the plan of burial of cables it refers, this
involves expenses in civil work, payment of tax in
case of cables laying’s, another very important
consideration to be taken into consideration is that
the design of the ODN must go of the hand with the
politics of the company.
ODN
OLT
ONT
ONT
ONT
1:N
CENTRAL OFFICE FIBRA
ÓPTICA
FIBRA ÓPTICA
Figure 4. Elements of a Passive Optical Network
Developed by Jennyfer Arteaga
D. PON Standards
APON— There was developed by the FSAN the
one who developed the initial recommendations for
APON as its initials indicate it that this standard
was based on the ATM capacities, but its life was
short.
BPON— Due to the limited ATM capacity, this
standard developed since the idea was to improve
and to increase the transmission capacities, briefly
Universidad Técnica Del Norte. Arteaga. Network of Optical fiber to the home FTTH-GPON.
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BPON was an APON progress, since it allows
WDM, it became bigger and dynamic, he was used
for business applications and it was based on ATM,
this standard defines the terminology, wavelengths,
the fiber, components and the levels of Potency.
GPON— Of equal way as a BPON progress arises
GPON, obviously increasing the capacity, allows to
come to major distances, support for major number
of ONT's, increases the transmission cup up to
2,48Gbps downstream and 1,24Gbps in upstream.
EPON & GEPON— In contrast to APON and
BPON, this technology does not transport cells
ATM without Ethernet, optimizing the traffic IP.
Next there appears a table which sums up the main
characteristics of the technology SET.
III. ANALYSIS OF REQUEST – SECTOR URCUQUÍ,
PROVINCE OF IMBABURA
Current situation of the network of access in the
parish Urcuquí, Imbabura province — The
company AirmaxTelecom S.A., at present it offers
to its clients Internet service, by means of the
wireless technology. Nevertheless, the used
technology, it does not supply the needs for band,
since one hopes that the number of clients should
increase during the course of the years, since the
city of Urcuquí is considered to be a city of growth.
Therefore it is indispensable that the company is
provided with a robust way of transmission, which
should provide major band to the users in this area,
therefore a network of access FTTH is an
indispensable solution, since the optical fiber to the
immune being to the interference, to have less
extenuation, to provide major band and to allow to
come with different types of services to the final
user at greatly big distances, puts in advantage to
this way, front, to the current wireless technology,
what will help to keep on fulfilling the targets of the
company allowing to its clients to enjoy multiple
services and excellent quality.
Next there appears the physical topology of the
current network.
CCR1036-12G-4S
CRS125-24G-1S-RM Switch POE TS-8-PRO
FIREWALL
Thundercache
Servidor Contable
SequreISP
CISCO 2960 series SI
INTERNET
TORRE OFICINA
5240Mhz
5260Mhz
5280Mhz 57
45M
hz
ROUTER
SERVIDOR PROXY
RADIO ENLACE
Figure 5. Scheme of Network of AIRMAXTELECOM S.A.
Developed by Jennyfer Arteaga
Projection of the situation of the network of
access in the parish Urcuquí, Imbabura
province— The idea is to realize an appropriate
design of the network of access for optical fiber
towards the subscriber or final user FTTH (Fiber To
The Home), in the Urcuquí urban area, for it will be
considered to be the projection of future users who
will exist during five years projected for the
network in the above mentioned area. According to
historical information obtained and facilitated by
the company, there was obtained an annual average
growth of 75% percent and that next, is detailed
(Table I).
The applications to be offered for the company
AIRMAXTELECOM TECHNOLOGICAL
SOLUTION S. A. its users, it has always been the
access to Internet, nevertheless by means of the
TABLE I WHOLE OF PROJECTED USERS
Year Users per year Majority client
2012 20 Residential
2013
2014 2015
2016
2017 2018
2019
40
60 105
184
322 423
740
Residential
Residential Residential
Residential
Residential Residential
Residential
*Note: Adapted table. Source: AIRMAXTELECOM S.A, Datos de
Contratos. Sequreisp_Contracts_2014-11-14.cvs [Excel document]
Universidad Técnica Del Norte. Arteaga. Network of Optical fiber to the home FTTH-GPON.
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technology FTTH, the speed of the access to this
service will increase and to a future if the company
needs it, he will be able to add services of audio and
video.
Select type of optical fiber — It has been decided
that the used type of optical fiber will be a single-
mode G.652D, since it allows to reach major
distance, major capacity and a less attenuation. It is
necessary to highlight that the fiber G.652D was
perfected to work in 1310nm (where there are
transmitted the voice and information) and 1550nm,
nevertheless also it can be employed at other
wavelengths. The fiber G.652D also water peak
(ZWP) is considered to be the fiber of low peak of
water (LWP) or fiber of zero what offers to him
advantage with its previous versions like for
example the fiber G.652A where the water peak
was very high giving place to impurities as there are
the ions OH, product of it the extenuation would
increase in this point.
On the other hand, the type of optical fiber to be
used for the interconnection of the users from the
last box of optical derivation will be, the guy G.657
class A, since he has necessary attributes to support
installation of networks of put access that this fiber
is insensitive to fold what turns his ideal for
facilities FTTH. With regard to the characteristics
of the cable to be used there proposes to use the
cable type ADSS, single-mode G.652D, for the
interconnection between the OLT and the optical
divisors of the first, power cutoff point (FEEDER).
IV. DESIGN OF THE NETWORK
Logical diagram of the Network— this item
considers all the necessary elements that a network
GPON uses, from the point of view of an ISP.
Climbing vine it will use a equipment OLT, same
that he is located in the node designated by the
company AIRMAXTELECOM S.A. the same one
that will make the division possible between users
by means of splitter's; from which ones there will
go out the threads of optical fiber that will come
towards the domicile of the final user.
Next the Figure 6, shows in a general way the
logical diagram of network that will take the access
network as an optical fiber.
Cliente Cliente Cliente ClienteCliente
Cliente Cliente Cliente Cliente Cliente
Cliente Cliente Cliente ClienteCliente
Dominio Dominio
NODO_OLT
ZONA 2 ZONA 3
SPLITTER 1:4
SPLITTER 1:8
SPLITTER 1:4
SPLITTER 1:8
SPLITTER 1:8
CABLE FEEDERCABLE DISTRIBUTIONCABLE DROP CABLE FEEDER
Figure 6. Scheme of a Network with topology Point
Multipoint.
Developed by Jennyfer Arteaga
The Figure 7, shows the configuration that a
network GPON presents when the operator wants to
offer such multiple services like; Voice,
Information (Internet) and Video (signs of Radio
Frequency, Low Video Demands and/or Signs
Satellites).Como is observed in the previous figure,
the miscellany of different wavelengths is possible
by means of an adapter WDM, the same one that
mixes wavelengths of 1490nm for voice and
information and 1550nm for signs of video.
PSTN
INTERNET
SERVIDOR VOD
MODULADOR RF
ALMACENAMIENTO DE VIDEO
CONMUTADOR ATM / ETHERNET
SPLITTER PRIMARIO
SPLITTER SECUNDARIO
ONT
CONMUTADOR DE CLASE 5
SEÑALES DE DIFUSIÓN LOCAL (TV RF)
OLT
WDM
EDFA
OPTICAL VIDEO TRANSMITER
Figure 7. General architecture of the Network of access FTTH
for an ISP.
Developed by Jennyfer Arteaga
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General description of the network of access
FTTH— Next there is detailed the general
description of the network of access by optical
fiber.
• The central connection point will be the OLT,
the same one that will expire with certain
characteristics that further on will be mentioned. is
necessary to locate the OLT in the node located in
the area to be served since it provides major
scalability of the network, savings in maintenance,
saving in cable of F.O, easy operation and
maintenance, and especially it is fulfilled by the
physical scope of 20Km described in the Rec. UIT-
T G.984.1, measured from the OLT towards the
domicile of the client. For it, it is recommended to
have a suitable office for external plant, the same
one that the main equipment (OLT) will lodge.
• Every module GPON will have to have the
aptitude to support applications FTTH, monitor the
optical potency got for every ONT, to offer safety to
the information in the linkage downstream by
means of encryption AES. Additionally it will have
to provide the entire management of the ONT
across the protocol OMCI (Operation Management
Control Interface). In addition to having a port
Gigabit Ethernet or 10GE that allows the
connection between the network of access and the
network of transport.
• Every area will be supplied by one or several
formed primary splitters in such a way that they
cover the demand of users projected for five years.
• The second splitting level will be the manager of
providing the threads to the users. For it the primary
splitter is who delivers the threads to the secondary
splitter. The optical fiber backbone will be opened
in an air way, across the existing postería since it is
easier and less costly than the underground
deployment, for it the bases will be cited as an
example geo indexed, granted by the company
EMELNORTE S.A., this is detailed further on in
the raising of the respective planes of the network
FTTH in the parish Urcuquí.
Initially there is planned a transfer of the current
users (60 users) in its entirety, so they would be
interested in obtaining an access to services of
telecommunications by means of the technology
FTTH. It is necessary to highlight that this area, it is
considered to be an area in development, for such a
reason it is advisable that the company uses a
methodology of marketing based on the new
infrastructure since he will wake up and there will
increase in the inhabitants the interest to acquire
access to services of telecommunications by means
of the technology FTTH.
To connect 60 current users in the parish Urcuquí
4 ports GPON will be needed, every area will be
connected to a port that he will be able to support
up to 64 connections, what it promises scalability to
the network as the number of users should increase.
Next there presents the percentage of distribution
users for areas.
For the physical scheme of the network GPON,
he decided to split to the Urcuquí sector into four
areas (to See Figure 8), in which one considers there
will be different level of demand of services of
telecommunications.
Figure 7. Areas distribution for Users' Thickness.
Developed by Jennyfer Arteaga
• The Area 1 delimited by the green color and the
area 2 for blue color; there are the places of
Urcuquí, in which there agglomerates big part of the
current users.
• The Areas 3 delimited by the blue color and the
area 4 combined with two previous ones, there are
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areas in which it is expected there will be an
increasing demand in the next years.
The type of optical fiber that will be used for this
project will be a single-mode and that expires with
the standard G.652D, since it allows coming at
major distances and be employed at the status of
1310 to 1625nm.
Interconnection of the network GPON— The
equipment OLT will have to support stages FTTH,
which allow last connection mile by means of
optical fiber, will have to support the standard ITU-
T G.984, the same one that describes the
functioning GPON, possess ports with capacity
Gigabit Ethernet that allows the integration with
networks IP/MPLS, capacity of transmission in the
windows of 1310nm, 1490 and 1550nm, for data
transmission, voice and video, will have to support
transmission distances up to 20Km. The equipment
of last mile ONT will have to provide the interfaces
that there support VoIP, Internet and services of
Video HD, in addition to being employed at the
windows of 1310, 1490 and 1550nm since it will
allow the integration of the previous services.
Main characteristics of the equipment OLT—
the standard G.983.1 specifies that for every port
GPON of the OLT, he will have to support a
maximum of 64 ONT's, with this essential
precedent, next there are described the minimal
characteristics needed for the equipment OLT and
ONT GPON. The select equipment is of the mark
HUAWEI for being the mark that expires with the
minimal requisites of the network of access for
optical fiber in the parish of Urcuquí. The
equipment ONT will be of the same mark, since it is
necessary to assure that it should be a 100 %
compatible with the equipment OLT of the same
mark.
Determination of the worst and best case of
linkage— Next there appears the analysis of the
budget of loss of the network of access FTTH. By
means of a review in the planes of the base geo-
reference and earlier described in the development
of the design of the network FTTH, in the city of
Urcuquí the following described case presents as it
to itself, like the best. The figure 8 describes the
scheme for the ONT, which is more remote, for that
a 2 kilometers approximate distance is had, with an
attenuation of 0,37dB/Km for 1310nm and 0,24
dB/Km in 1550nm, four connectors are had each
one with 0,5dB of loss of insertion, six mergers
with 0,1dB and two splitters connected in cascade
of 1x4 with 7,8 dB and 1x8 with 11,4dB of loss. .
FDH ROSETA ÓPTICA
OLTONT
LONGITUD DEL ENLACE
SIMBOLOGÍA
CONECTOR
EMPALME
Atenuación por fibra = 0.37 dB/Km (1310nm) = 0.24 dB/Km (1550nm)
Atenuación por fusión= 0.1 dB (TIA/EIA-758)Atenuación por conector = 0.5 dB (ITU-T G.671)Longitud del enlace= 2.109 Km
SPLITTER PRIMARIO 1:4P. Inserción 7.8dB
SPLITTER SECUNDARIO 1:8P. Inserción 11.4 dB
Figure 8. Scheme of connection FTTH, for the worst case.
Developed by Jennyfer Arteaga
TABLEIII MAIN CHARACTERISTICS OF THE EQUIPMENT OLT
HUAWEI
To support of standard ITU-T G.984
GPON Port (minimum 8 ports GPON) Ports with capacity Gigabit Ethernet
Quality of Services (QoS).
To allow speed UP / DOWN: 1.24 Gbps / 2.4 Gbps Administrable vaguely and locally
Aptitude to provide Video services in the lambda of
1550nm Transmission capacity in the windows 1310nm and
1490
To support transmission distances up to 20Km. Hot Swap
802.3z (Support Gigabit Ethernet for fiber in UPLINK)
802.1p (priority of traffic for different applications)
YES
YES YES
YES
YES YES
YES
YES
YES YES
YES
YES
*Note: Adapted table. Source: Equipment selection. Design of a last
network mile, using a network GPON, for the sector of the new Airport of
Quito.
TABLE II AREAS DISTRIBUTION FOR USER’S THICKNESS
Area % Number of
Users
(2014)
Number
of Ports
Number of Users
(2019)
Number
of Ports
1
2
3
4
30%
30%
25%
15%
18
18
9
15
60
1
1
1
1
222
222
185
111
740
1
1
1
1
*Note: Adapted table. Developed by Jennyfer Arteaga
Universidad Técnica Del Norte. Arteaga. Network of Optical fiber to the home FTTH-GPON.
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(1)
The equation (1), 22,98 is the entire value of the
extenuation obtained by the sum of the implicit
extenuations in the linkage dB for the window of
1310nm and of 22,7 dB for the case of 1550nm. Of
equal way the Figure 9 represents the best case, that
is to say, in which the distance between the OLT
and ONT is shorter.
FDHOLT
LONGITUD DEL ENLACE
SIMBOLOGÍA
CONECTOR
EMPALME
Atenuación por fibra = 0.37 dB/Km (1310nm) = 0.24 dB/Km (1550nm)
Atenuación por empalme= 0.1 dB (TIA/EIA-758)Atenuación por conector = 0.5 dB (ITU-T G.671)Longitud del enlace= 0.1443 Km
SPLITTER PRIMARIO 1:4P. Inserción 7.8dB
SPLITTER SECUNDARIO 1:8P. Inserción 11.4 dB
ROSETA ÓPTICA ONT
Figure 9. Scheme of connection FTTH, for the worst case.
Developed by Jennyfer Arteaga
(2)
The equation (2), it represents the losses obtained
for the best case, the difference is the distance, as
the graph is indicated the obtained distance is lower
than one kilometer.
Obtaining 21,74dB in case of 1310nm and
21,73dB for the lambda of 1550m. For the obtained
values one concludes that the loss budget is in the
status allowed according to the standard.
V. FINANCIAL ANALYSIS
A. Budget of the Project
The budget of a project is the stage in which
there is analyzed the cost of investment of the cash
commodities that will allow to guarantee the correct
operation of the above mentioned project, in other
words the budget of the project is the document in
which there consists the quantity of money that will
be needed to carry out the planned activities.
Investment Active Equipment— This item
consists of the teams necessary for the
implementation of the network of access FTTH,
same that they allow the communication to be
possible.
The Table IV reflects the entire cost of the
investment in active equipment, goods that are used
to guarantee the operation of the project.
Investment Passive Equipment— It implies the
cost of the passive equipment, the same one that
there composes the ODN (Network of Distribution
Or Optical Dispersion), where they are included:
cables of optical fiber, splitter closure, patch cord &
pigtail, adapter, fiber socket, general tool, PLC
splitter, EDFA, etc.
It is necessary to highlight that the values that
appear next include the element FTTH and the labor
cost for the laying of the above mentioned elements,
it presents the entire cost in equipment for the
network of access FTTH, which there indicates the
sum of the passive equipment and the active
equipment.
TABLA IV
INVESTMENT ACTIVE EQUIPMENT
ITEM
DESCRIPTION
QTY
PRICE
UNIT TOTAL
F01 OLT HUAWEI MA5603T SERIES
1,00 $ 43.953,26 $ 43.953,26
F02 ONT HUAWEI
HG8247 SERIES
60,00 $ 224,00 $ 13.440,00
F03 LICENSE
MA5600T
1,00 $ 3.549,16 $ 3.549,16
TOTAL $ 60.942,42
*Note: Adapted table. Developed by Jennyfer Arteaga. The table was filled
according to the quotations provided for Huawei Co. Ltda.
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Operational Expenses— defined as the ordinary
expenses and that it are tied by the starting of a
project, the same that the company must confront
for the purpose of obtaining benefits. Next the
Table VI reflects the typical expenses that the
company will have to face in the course of the years
of operation of the network. Inside these expenses
we take the cost as the lease of existing postería in
the area to serve, since the deployment of the
network will be an airline, the cost for monthly
hiring of the international exit. Finally for the
maintenance of the network it has been estimated
like 10% percent of the entire cost of the
implementation of the same one (cost of passive
network). The table has been refilled by fixed
values for the following five years with the
exception of the year in which the implementation
of the project begins, since it was estimated, that the
installation of the network lasts about three month,
of that time the value of the payment for exit hiring
on the outside where an extension of three months
has been done by which the entire value of payment
to the Carrier ($ 42.000,00) has been divided for
12meses and this value multiplied by three giving a
whole of ($ 10 500,00), by the beginning of the
execution of the project.
Depreciation of Active Equipment — To take a
correct balance it is necessary to consider the costs
of depreciation of the teams, for the present project
it is considered to be the useful life of five years
since it is a question of technological team with a
value of depreciation per year of 20% percent.
The elements that shape the passive network, that
is to say, the system of wiring of fiber, the external
plant and other elements that shape the ODN
(network of passive dispersion), have a time of
useful life superior to ten years, by what it has not
been considered to be depreciation elements in this
analysis.
Financing — The Company will have to
consider, obtain a bank put credit that has not the
necessary budget, for which it is important to know
the value of the monthly quota that the company
will have to cancel.
According to the web page of the Central Bank of
the Ecuador in which the rates of current interest
appear to January, 2015, the referential interest rate
for a managerial productive loan is 9.53 % percent,
it appraises that will be considered during the space
of five years (60 months).
Income of the Project— Next there is detailed
the summary of the bundles of service by
subscription and monthly payment, depending on
the plans that can be; Home or Residential, in that
there is offered band sufficient for applications or
tasks of the hearth and PYMES for kidlings and
TABLE VII DEPRECIATION OF ACTIVE EQUIPMENT
DESCRIPTION
VALUE OF
THE
EQUIPMENT
ANNUAL
DEPRECIATION
TO 20 %
OLT HUAWEI SERIE
MA5603T
$ 43.953,26 $ 8.790,65
ONT HUAWEI SERIE HG8247 $ 13.440,00 $ 2.688,00
TOTAL $ 11.478,65
*Note: Adapted table. Developed by Jennyfer Arteaga
TABLE VI
ENTIRE COST OF EQUIPMENT NETWORK OF ACCESS FTTH-GPON
DESCRIPTION
YEAR 1 - 5
PAYMENT CARRIER
$ 10.500,00
$ 42.000,00
LEASE OF POST
**
$ 13.200,00
MAINTENANCE OF
THE NETWORK 10 % PASSIVE NETWORK
**
$ 4.495,56
*Note: Adapted table. Developed by Jennyfer Arteaga
TABLE V
ENTIRE COST OF EQUIPMENT NETWORK OF ACCESS FTTH-GPON
DESCRIPTION
U
QTY
TOTAL
VOLUMEN DE OBRA - RED DE DISPERSIÓN - ELEMENTOS
PASIVOS
u
1
$ 44.955,64
EQUIPO ACTIVO FTTH-GPON u 1 $ 60.942,42
TOTAL $ 105.898,06
*Note: Adapted table. Developed by Jennyfer Arteaga
Universidad Técnica Del Norte. Arteaga. Network of Optical fiber to the home FTTH-GPON.
11
medium enterprises.
Also it is necessary to highlight that the values
showed next are referential, since these will depend
and have to fit to the politics of the company
therefore they might be subject to changes.
Income Cash flow— For this project it has been
considered to be a percentage of growth of 75%
percent in accordance with the realized analysis,
with this information it is possible to be believed
the new users and the cash flow that they will
generate in the next five years, this will be able to
be demonstrated next in the following table, which
shows the revenue that will be obtained by
installation concept for which will take only the
new users per year.
To obtain the income for subscription 60 current
users will be taken into consideration in the first
year and there will do to them the discount of 50 %
percent of the cost of installation $ 56,00 (price
includes V.A.T) and the subscription will have to
new users a cost of $ 112,00 (price includes V.A.T).
To obtain the value of monthly revenue for the
service, it was considered that the cost that has a
Residential plan or basic Home of 3Mbps, which is
of $ 41,22 (price includes V.A.T), this value will be
multiplied by the whole of users a year and for 12
months since it will give as the value of annual
income proved.
Departures Cash flow— there are considered to be
the values by concept of all the teams involved
during the implementation of the project.
Initially an entire transfer of the users appears at
present wireless (60 users) towards the optical fiber
network since they are interested in having access to
telecommunications services with the technology
FTTH, additional to this, they are considered to be
the new users projected in the same year.
Next the implementation cost appears for user for
it was considered, that whenever a new client
integrates to the network, the unitary
implementation cost dear will be of $ 260,76.
Since the users will increase every year, the cost
of annual implementation will be calculated
multiplying the number of new users, for the value
of the cost of implementation.
TABLE VIII VALUES FOR SERVICE RESIDENTIAL
Internet Services
Price +V.A.T
Suscrip. +V.A.T
Sharing
3Mbps
$ 41,22
$ 112,00
2:1
6Mbps
$ 69,79
$ 112,00
2:1
9Mbps
$ 88,60
$ 112,00
2:1
15Mbps
$ 142,54
$ 112,00
2:1
18Mbps
$ 173,90
$ 112,00
2:1
*Note: Adapted table. Developed by Jennyfer Arteaga. The Table was
refilled by approximate values, according to companies that offer this service
in the Imbabura province.
TABLE IX
INCOME CASH FLOW
INCOME
USERS
SUSCRIPTION
YEAR INCOME
INICIO
60
$ 3.360,00
-----
AÑO 1 105(45n) $ 5.040,00 $ 51.932,16
AÑO 2 184(79n) $ 8.848,00 $ 91.004,93
AÑO 3 322(138n) $ 15.456,00 $ 159.258,62
AÑO 4 463(101n) $ 11.312,00 $ 228.996,10
AÑO 5 740(317n) $ 35.504,00 $ 365.998,08
*Note: Adapted table. Developed by Jennyfer Arteaga
TABLE X
DEPARTURES CASH FLOW
DESCRIPTION
UNIT
PRICE
ONT HUAWEI SERIES HG8247 $ 224,00
SUPPLY AND LAYING OF PATCH CORD $11,78
SUPPLY AND LAYING OF FIBER TERMINAL
BOXES
$ 24,98
TOTAL COST FOR USER $ 260,76
*Note: Adapted table. Developed by Jennyfer Arteaga
Universidad Técnica Del Norte. Arteaga. Network of Optical fiber to the home FTTH-GPON.
12
Profitability of the Project— To determine if the
project is profitable, it is needed to identify certain
parameters that there will do this possibly the same
ones that will be the following ones: NPV (net
present value), ROI (rate of return on investment),
C/B (relation cost benefit) and PRI (period of
recovery of investment).
NPV (net present value) — According to the web
page of the Central Bank of the Ecuador to January,
2015, the current interest rate of the market is of
i=10,21% percent per year, the time for which to
realize the project is five years old, it is necessary to
stress that the interest rate can change in the course
of the years.
(3)
The equation (3) indicates the obtained value of
the VAN and according to the obtained value and
observing that the same one is bigger than zero it is
possible to conclude that the implementation of the
project is profitable.
ROI (rate of return on investment) — The value
of the TIR is bigger than the current interest rate on
the market that is 10,21% percent.
(4)
The equation (4), it indicates the value of TIR of
18% percent therefore one concludes that the
project is profitable for its implementation.
PRI (period of recovery of investment) — It
indicates the time necessary to recover the laid-
down capital. To calculate the PRI there is
necessary to be accumulating the clear flows
TABLE XI PROFIT & LOSS STATEMENT
INCOME
Year 2015
Year 2016
Year 2017
Year 2018
Year 2019
USERS
105
184
322
463
740
NEW / USERS 60 45 79 138 101 317
SUSCRIPTIÓN (Residential) $ 8.400,00 $ 8.848,00 $ 15.456,00 $ 11.312,00 $ 35.504,00
SERVICES (Residential) $ 51.932,16 $ 91.004,93 $ 159.258,62 $ 228.996,10 $ 365.998,08
TOTAL INCOME $ - $ 60.332,16 $ 99.852,93 $ 174.714,62 $ 240.308,10 $ 401.502,08
EXPENSES
ACTIVE EQUIPMENT - IMPLEMENTATIÓN
$ 60.942,42 $ 11.734,20 $ 20.600,04 $ 35.984,88 $ 26.336,76 $ 82.660,92
PASSIVE NETWORK
DISPERSION
$ 44.955,64 ** ** ** ** **
LEASE POSTS ** $ 13.200,00 $ 13.200,00 $ 13.200,00 $ 13.200,00 $ 13.200,00
PAYMENT CARRIER $ 10.500,00 $ 42.000,00 $ 42.000,00 $ 42.000,00 $ 42.000,00 $ 42.000,00
ENGINEERING &
INSTALLATION
$ 7.412,86 ** ** ** ** **
MAINTENANCE OF THE
NETWORK
** $ 4.495,56 $ 4.495,56 $ 4.495,56 $ 4.495,56 $ 4.495,56
PAYMENT BANK LOAN ** $ 26.707,31 $ 26.707,31 $ 26.707,31 $ 26.707,31 $ 26.707,31
DEPRECIATIÓN ACTIVE EQUIPMENT
** $ 11.478,65 $ 11.478,65 $ 11.478,65 $ 11.478,65 $ 11.478,65
TOTAL EXPENSES $ 123.810,92 $ 109.615,73 $ 118.481,57 $ 133.866,41 $ 124.218,29 $ 180.542,45
CASH FLOW(USD) -123810,92 $ -49.283,57 $ -18.628,64 $ 40.848,22 $ 116.089,81 $ 220.959,63
*Nota: Adapted table. Developed by Jennyfer Arteaga.
Universidad Técnica Del Norte. Arteaga. Network of Optical fiber to the home FTTH-GPON.
13
obtained in every year up to going so far as to cover
the investment for it next appears a table in which
there are detailed the flows accumulated during the
estimated period of the project.
As it is observed that next the value of clear
flows accumulated in the fifth year is major than the
investment. Therefore the period of recovery of the
investment would happen approximately in five
years.
Cost-Benefit (C/B) — this parameter determines
the profitability of the project in general terms, that
is to say, the result expresses the money gained in
every dollar invested in the project.
(5)
The equation (5), it indicates that the value cost-
benefit is 2,4 dollars that is to say, this value would
be gained by every annual inverted dollar. With the
information obtained in this chapter one concludes
that the project is a profitable position that the
period of recovery of investment is five years, the
valuation is of investment comeback it is 18%
percent and the value that the company will obtain
will be of 2,4 dollars what it implies that every
dollar that inverted, this one will be duplicated, by
what it is recommended that to be implemented the
project.
VI. CONCLUSIONS
The evolution of the networks SET it has allowed,
that telecommunications services up to the hearth
(FTTx) improve, since speeds that go from 1,24/2,4
Gbps in downstream and upstream, it allows to
offer such services like; VOIP, IPTV, Internet
applications between others.
The change of technology in the city of Urcuquí,
undoubtedly will allow offering more number of
services with excellent quality as for speed,
covering the expectations of the clients who every
day need of services and applications of
telecommunications of major band, since a basic
need has turned.
There has been designed the network of access
FTTH (Fiber up to the hearth) in the parish of
Urcuquí by means of the employment of the
technology GPON, opened from the node (OLT),
located in the area to be served up to the domicile of
the final user (ONT).
Of the realized study one concludes that the
project is a profitable position that is counted by the
physical way for the deployment of the network,
which will be by means of postería existing, in
addition to being provided with companies that
provide equipment needed for the implementation
of this design.
REFERENCES
[1] Optical networks, José Capmany Francoy, Beatriz Ortega
Tamarit, 2006.
TABLE XII
PERIOD OF RECOVERY OF INVESTMENT
PRI
YEAR
CASH FLOW
(USD)
CASH FLOW
CUMULATIVE
(USD)
1
$ -49.283,57
$ -49.283,57
2 $ -18.628,64 $ -67.912,21
3 $ 40.848,22 $ -27.063,99
4 $116.089,81 $ 89.025,82
5 $220.959,63 $ 309.985,45
*Note: Adapted table. Developed by Jennyfer Arteaga
TABLA XIII PERIODO DE RECUPERACIÓN DE INVERSIÓN.
TIME INVESTMENT
(USD)
COST NEW
USERS
INCOME
ANNUAL
INICIO $ 123.810,92 $ 60.942,42
AÑO 1 $ 11.734,20 $ 51.932,16
AÑO 2 $ 20.600,04 $ 91.004,93
AÑO 3 $ 35.984,88 $ 159.258,62
AÑO 4 $ 26.336,76 $ 228.996,10
AÑO 5 $ 82.660,92 $ 365.998,08
TOTAL $ 123.810,92 $ 238.259,22 $ 897.189,89
*Note: Adapted table. Developed by Jennyfer Arteaga
Universidad Técnica Del Norte. Arteaga. Network of Optical fiber to the home FTTH-GPON.
14
[2] System of optical communications, Daniel Pastor,
Francisco Ramos, José Capmany, 2007.
[3] Networks and Services of Telecommunications, José
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[4] Systems and Networks of Communications, José A.
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20FTTH%20PON%20de%20EXFO%202013.pdf
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optica-y-componentes-pasivos/fibra-optica-para-redes-de-
nueva-generacion-ngn/
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de-distribuci%C3%B3n-dg
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Jennyfer S. Arteaga P.
She was born in Atuntaqui - Imbabura on
12 November 1989. She completed his
primary studies in the School ―María
Auxiliadora‖.
In 2007 she obtained its graduate's title in
Commerce and Administration Computer
Specialty in the ―Colegio Nacional
Cumbayá‖
Currtenty is a graduated of the Career in
Electronics and Networks of
Communication of the Universidad Técnica del Norte. She
works in the company TELCONET Quito - Ecuador.